KaloBios in Deal to Distance Itself From Martin Shkreli

Pharmaceuticals company trying to exit bankruptcy and get out from under shadow of former CEO

By
Peg Brickley

Updated June 14, 2016 4:04 pm ET

KaloBios Pharmaceuticals Inc., the small drug company caught in the glare of publicity surrounding Martin Shkreli, has reached a deal that limits the price-hiking former pharmaceutical executive’s role in its future.

Mr. Shkreli was chief executive of KaloBios in December when he was arrested for securities fraud unrelated to KaloBios. He denies the fraud charges and has said he was targeted unfairly for prosecution due to the publicity surrounding his move, while at drug company Turing Pharmaceuticals, to raise the price...